.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS CEO Sergio Ermotti stated Wednesday that market volatility could possibly boost in the 2nd half of the year, but he does certainly not think the USA is actually moving into a recession.Global equities viewed stinging auctions recently as real estate investors digested weak economic information out of the USA which increased fears concerning a financial downturn worldwide's most extensive economic condition. It also raised questions concerning whether the Federal Reserve needed to have to become less hawkish with its own monetary policy position. The central bank always kept costs on hold in overdue July at a 23-year high.When inquired about the outlook for the united state economic condition, Ermotti mentioned: "Certainly not automatically a downturn, yet undoubtedly a downturn is feasible."" The macroeconomic clues are not clear adequate to discuss downturns, and in fact, it is actually possibly premature. What we know is actually that the Fed possesses enough capability to step in and also help that, although it's visiting take time, whatever they do to become at that point transmitted into the economy," the CEO said to CNBC on Wednesday after the banking company mentioned its own second-quarter results.UBS expects that the Federal Book will definitely reduce prices through at the very least fifty basis factors this year. At the moment, traders are divided between a 50 and also a 25 basis aspect cut at the Fed's next appointment in September, depending on to LSEG data.Speaking to CNBC, Ermotti stated that our experts are actually very likely to see higher market dryness in the second one-half of the year, partly because of the USA political election in Nov." That's one element, however likewise, if I consider the overall geopolitical image, if I take a look at the macroeconomic image, what our team found in the last number of full weeks in terms of volatility, which, in my perspective, is a crystal clear sign of the delicacy of some factors of the unit, u00e2 $ u00a6 one ought to anticipate certainly a much higher level of dryness," he said.Another uncertainty going ahead is financial policy and also whether central banks will definitely must cut rates a lot more strongly to battle a downturn in the economic situation. In Switzerland, where UBS is actually headquartered, the central bank has actually cut prices two times this year. The International Reserve Bank and the Banking Company of England possess both declared one slice so far." Knowing the events which are theu00c2 unknowns on the horizon like the U.S. governmental election, our experts ended up being obsequious with a really reduced volatility, now our company are actually shifting to a much more usual regimen," Bruno Verstraete, owner of Lakefield Wealth Control informed CNBC Wednesday." In the context of UBS, [more volatility is] certainly not automatically a poor trait, considering that additional volatility suggests more trading profit," he added.